top of page

GST: Valuation Rules for Online Games and Casinos

Government has notified Valuation Rules 31B and 31C on vide Notification No. 45/2023 dated 6th September, 2023 for Online money gaming and Casino:


As per Rules, GST will be paid on the value deposited/paid by the players to the platforms/Casinos (excluding the amount entered into games/ bets out of winnings of previous games/ bets in further games). For instance, Two Players (A&B) deposited Rs. 2000 each for Rummy Game and in the game, Player A wins and again bet the winning amount i.e. Rs.3,600 (4000-commission of Platform) on another game. In this case, GST will be discharged on Rs. 4,000 not on Rs.7600. Further, on commission of Rs. 400, platform does not need to discharge GST. Furthermore, it has been clarified in the Rules that, GST has to be discharged on Value of Original Deposits even if the same is refunded/returned later on to the player.


Legal Text of the Rules


“31B. Value of supply in case of online gaming including online money gaming.–

Notwithstanding anything contained in this chapter, the value of supply of online gaming, including supply of actionable claims involved in online money gaming, shall be the total amount paid or payable to or deposited with the supplier by way of money or money’s worth, including virtual digital assets, by or on behalf of the player:


Provided that any amount returned or refunded by the supplier to the player for any reasons whatsoever, including player not using the amount paid or deposited with the supplier for participating in any event, shall not be deductible from the value of supply of online money gaming.


31C. Value of supply of actionable claims in case of casino.–

Notwithstanding anything contained in this chapter, the value of supply of actionable claims in casino shall be the total amount paid or payable by or on behalf of the player for –

(i) purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or

(ii) participating in any event, including game, scheme, competition or any other activity or process, in the casino, in cases where the token, chips, coins or tickets, by whatever name called, are not required:

Provided that any amount returned or refunded by the casino to the player on return of token, coins, chips, or tickets, as the case may be, or otherwise, shall not be deductible from the value of the supply of actionable claims in casino.


Explanation.- For the purpose of rule 31B and rule 31C, any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is used for playing by the said player in a further event without withdrawing, shall not be considered as the amount paid to or deposited with the supplier by or on behalf of the said player.”




Please connect with us @Linkedinfor regular updates.


Disclaimer: We have taken due care while explaining the provisions surrounding the issue, however, Fab Gyan and its Team will not be responsible for any mistake.



Recent Posts

See All

Comments


bottom of page